I'm in IR1 too now.
This is my first lithium stock I bought after buying LTR 4+ years ago. LTR is my baby though, it's got more than 95%of my portfolio. Still holding very thight.
I think IR1 is going to be interesting to see how it comes out after drilling.
These are the important points for me;
- the spodumene rocks all around, but it needs to be drilled to see how extensive they are.
- being in South Dakota in the US is a big plus, they can get the full benefit of IRA (Inflation Reduction Act) for full $7500 incentive on EV purchase. This is very important.
- also they now have the mining license on main the tenements. They can quickly start mining. Chairman Simon Lili said on an interview they could mine and make DMS (Dense Media Seperation; which is only the mechanical work to extract the lithium, but in low recovery rates like 55%-60%, no wet plant which is floatation). I think they can do that because there re large crystals of spodumene there.
- There is big fund in IR1 now; Waratah’s Electrification and Decarbonization AIE LP Fund. The CR was cornerstoned by this fund.Waratah Capital Advisers is a Toronto-based asset manager that specializes in alternative strategies and manages over $4 billion in assets from high-net-worth individuals.
- I wouldn't buy any lithium stock in Ontario and Quebec as that area is the frozen country. The temperatures are around -35 in at least half of the time during the year. The process plants must be undercover, the open pits are getting frozen, the exploration and production are very hard and costly up there. Nemaska Lithium went bankrupted because of high costs. James Bay project could'nt be developed for long time by Galaxy (Now AKE) because of that. So Sth Dakota should be the best place for spodumene mining in North America IMO.
- There are already some old mining pits on these tenements. There are a lot of spodumene bearing rocks at the surface. Those type of historically proven mineral mining workings are very important IMO. Greenbushes was the same, Manono of AVZ in DRC was the same, they were old 100 years of places.
- IR1 management seems to be very experienced, even in lithium exploration. Simon Lile said they will try to get the best people on market if they can find.
- The vendors of tenements and properties got 9.5m shares (5.5m + 4m) but they accepted to leave them in escrow for two years (from today). That's a good sign for me. That tells me that they have a confidence in their assets. Otherwise they would get the shares and dump them at the opening day (today) and after.
- IR1 directors have also got 12m performance shares but they also accepted to leave them in escrow for two years. That's another good sign for me.
See the below table (from prospectus) shows the share structure. There are 125m shares on issue but a big part of it in escrow. So IR1 is going to be very tightly held stock. The green lines are on market (liquid) and yellow ones are in escrow.
The last 3 lines are vendors' shares.
This table shows the restricted shares and options. It was announced this week.
As
@Tasmanbubble said above;
IR1 said on the announcement on Monday 19th; the acquisition has been settled as part of the re-complianceprocess, the vendors hold some results and information in relation to the properties and their prior exploration anddevelopment. Now they will give (might be already given now) those results and info to IR1 and they have become the ownership of IRIS.
This information comprises drill hole logs and drilling chips, which IRIS will now submit to assaylaboratories, and will report on once results are returned.
IR1 has also secured theservices of a drilling company, with drilling activities currently underway.
I hope directors can be patient and wait until the the whole value of the assets are understood and they try to create value for shareholders and for themselves like LTR management has done. Greed is no good.
I'm not sure if they will be able find a good resource there though. It needs to drilled. Largest spod crystal in the world was found at this area. However I'm not sure if there is LCT pegmatite system or these are just some individual pegmatite shoot-outs like CXO discovered at NT.
We will see after drilling and drilling again. It's not going to happen overnight though, it needs patience and hardwork.
GLTA.
Projects in the area (not one but many)
(20min delay)